Mr Chandran was ranked 14th on the Forbes 2007 list of 40 richest people in Singapore. Married with two children, he was estimated to be worth US$490 million, according to Forbes magazine. -- PHOTO: ARTHUR LEE CH

Chandran, founder of the biggest supplier of marine fuel in the Americas with annual revenue of $4.4 billion (S$6.3 billion), died on Monday while travelling in Riau, Indonesia.

Shares plunged
The company's shares plunged 15.5 per cent, to their lowest ever, at the start of trade on Tuesday, as investors feared delays in start of operations at the company's upcoming fuel storage and supply terminals in Singapore and in the Middle Eastern port of Fujairah, both due this month.

A Chemoil spokeswoman told reporters that both the terminals in Singapore and Fujairah would start operations this month as scheduled and that directors of the firm were flying in to Singapore to elect a successor.

Postponed ceremony
However, an opening ceremony for the firm's oil storage terminal in Singapore, due on Thursday, has been postponed.

'Operations continue to be run by the vice presidents of the company in various locations. There has been no disruption at all,' she said.

'The Helios Terminal opening ceremony will be postponed as a mark of respect,' she said.

Some brokerage houses such as CIMB downgraded Chemoil shares, saying the death of Chandran, who owned 50.5 per cent of the company, introduces uncertainty into the firm's immediate prospects and strategic direction in the medium-term.

'While it would be an exaggeration to describe Chemoil as a one-man company, Chandran founded the company in 1982, had successfully expanded the its operations over 20 years,' said CIMB analyst Robert Adair, who downgraded his call on Chemoil shares to 'Neutral' from a 'Buy'.

However, brokers said two major US investment banks were buying Chemoil shares after the early selloff, helping the stock recover about half of its losses by 4pm Singapore time (0800 GMT).

Successors
It was not clear who would take over the firm. Top executives include Jerome Lorenzo, chief financial officer, John Beckman, vice president of operations and Adrian Tolson, vice president of sales and marketing, the company's Web site showed.

Travelling with Chandran was Terence Gidlow, the firm's vice president of business development, who was injured but is in stable condition. The company was making arrangements to bring Gidlow to Singapore, the spokeswoman said.

Expansion plans
Chandran, who began fuel trading in 1981 and listed Chemoil in Singapore in 2006, told reporters in an interview last June that he planned to grab a 25-30 per cent share of the marine fuels market in Fujairah, to tap booming cross-regional shipping trade.

'His ebullient personality was clearly an important influence behind the company's strategy of expansion. His unfortunate death introduces additional uncertainty to its immediate prospects,' CIMB's Adair said.

Mr Adair said Itochu Corp , Japan's fourth biggest trading company that owns 37.50 per cent of Chemoil, was likely to play a leading role in appointing a successor and in any restructuring that follows.

UBS analyst Cheryl Lee said succession planning prior to the accident was limited.

'While we believe enough structure is in place such that day-to-day operations should not be affected, medium term plans and strategic direction would be uncertain,' she said.

Past performance
Chemoil shares lost 16 per cent in 2007, underperforming last year's 17 per cent gain in Singapore's Straits Times Index after derivatives losses. It competes globally with firms such as BP , Chevron Corp and Royal Vopak . -- REUTERS